Category: Markets

United States Economy


The United States of America has the world’s largest national economy. It makes up roughly 17 to 22 percent of the world’s gross domestic product (GDP). The currency of the United States, the dollar, is the most widely used currency in international trade, as well as the world’s foremost reserve currency. In fact, several nations other than the United States use the US dollar as their own currency: including the British Virgin Islands, Ecuador, Panama, the Bahamas, Turks and Caicos, Vietnam, Cambodia, Nicaragua, and Belize.

US Export, Import and Trade


US foreign trade and global economic policies have experienced drastic changes since the days of its founding fathers. Prior to the Great Depression and World War II, government and businesses mostly concentrated on developing the domestic economy irrespective of what went on abroad. Since then however, the US has generally sought to reduce trade barriers and coordinate the world economic system.

US Economic Structure


The US is a market-oriented economy, where private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace.

US business firms enjoy considerably greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, lay off surplus workers, and develop new products. At the same time, they face higher barriers to entry in their rivals’ home markets than the barriers to entry of foreign firms in US markets.

US Industry Sectors


The US is one of the most technologically advanced economies in the world, coming in 10th in the Global Innovation Index and 12th for the World Bank’s Knowledge Economy Index. As such, they also lead the world in industries such as manufacturing and finance, and are among the top three nations in industries such as commercial aircrafts and automobiles production.

Abenomics Beginning to Work, Says IMF


The International Monetary Fund on Friday gave its full backing to Japan’s use of ‘Abenomics’, adding that it is “beginning to work”, but warned of significant downside risks to the world’s third largest economy if it does not rein in its huge government debt.

US Economic Forecast


The US economy grew by 2.211 percent in 2012, compared to 1.808 percent in 2011 and 2.391 percent in 2010. Three consecutive years of growth has since reversed the recession experienced from 2008-2009, but the economy is still recovering too slowly from the devastating impact of the financial crisis – its weakest rebound since World War II.

Will The Arctic Be The World’s New Economic Hotspot?


The shrinking icecaps in the Arctic have opened up new opportunities for trade, shipping and natural resource exploration at the top of the world. While the Arctic Council, representing countries with territory above the Arctic Circle, has no meaningful decision-making power at present, its decision to granted six new countries observer status could be a precursor for greater importance in the future.

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Richest 20% to Benefit Most From US Tax Breaks: CBO


More than half of the biggest U.S. tax breaks will benefit wealthier households significantly more than lower income ones, a new study from the nonpartisan Congressional Budget Office revealed.

The 10 largest U.S. tax breaks will save taxpayers more than $900 billion this year, with a little more than half the benefits flowing to the richest 20 percent of households, congressional budget analysts said on Wednesday.

Cyprus Bailout Deal Caused Mini Bank Run Across Eurozone: ECB


Cyprus’s controversial bailout in late-March may have caused the level of private bank deposits in most eurozone nations to drop the following month, showed European Central Bank data on Wednesday, reflecting fears among savers in other countries, especially those whose banking sectors were already under stress, that their savings would also take Cyprus-style losses.

IMF Lowers China Growth Forecast to 7.75%, Issues Warning on Debt


The International Monetary Fund has lowered the growth forecast for China for the second time in just six weeks, saying it expects growth to reach “around 7.75 percent” this year. The Washington-based institution also warned that Beijing needs to make a “decisive push” to launch new market-oriented reforms and raised concerns about a rapid expansion of credit in the world’s second largest economy.